Dashboard: XBMC, all play games as good as each other but this is one of the best standalone media players until you build a home theatre system (where you may well end up using XBMC anyway).

FTP: I think I posted in a thread a little while back but the way I usually do it is to plug the xbox in and power it,
On the network options do not bother with manual/static address as many modern routers do not like addresses in given ranges (mine starts at 192.168.1.64 for instance and anything lower such as the one in the guide will make it throw a wobbly) but choose a automatic/DCHP instead. Reset if necessary (it should not be).
Once it has reached the dash it should have an IP address (I set my light to turn red to make this easier).